senate minority leader mitch mcconnell and joe biden kept in place to avoid $200 billion in tax increases. broad stroke spending cuts and domestic and defense spending. they would take effect gradually over a period beginning at midnight if the white house and congress can't reconcile their differences. it appeared to have been movement on the cost of living increases for social security recipients. opposition to the white house's proposed rate of increase was dropped but the common ground is even shaky. the fierce disagreement over whether the bush era tax cut with the top income earners should be allowed to expire while middle income earners would see tax relief. the sticking point is over where the income line should be separating those who should continue to see the tax cuts from those who would see them go away. it's about slowing spending and deficit reduction. >> make no mistake. there will be real damage. we'll be squeezing people who deserve better. we'll scramble to find budget reductions in a way that sense. sometime in hours, days, weeks ahead. we will get a semi-balanced smal